Part 8 of the “5% to Ukraine” opinion piece
How Norway Giving 5% will Change Ukraine’s Power Balance
Let’s but power back in Ukrainian hands
Part of the 5% to Ukraine opinion piece. The original Norwegian text was written to implore the people of Norway to invest 5% of our sovereign wealth fund in a Ukrainian victory and the future of Europe. It has been translated into English for a wider audience.
If we give 5% of our sovereign wealth fund to Ukraine, let us also give them control over how the money is spent. By giving Ukraine control, we will empower them.
The task of Norway, and Norges Bank, is to make it clear to the whole world that the funds are available for Ukraine to acquire new military equipment as quickly and efficiently as possible. Ukraine can spend it all in a month, if they so wish.
This will empower Ukraine in future negotiations with Russia, as it will be known that a significant amount of new military supplies are on their way to Ukraine.
If we make these funds available, we can expect to see:
- A significant increase in Ukrainian weapons and drone production
- A solution to the problem of the shortage of artillery shells, artillery barrels, and rockets
- New air defense systems to intercept Russian missiles
- New long-range weapons
- The equipment needed for Ukraine to fully utilize their new F16 jets
- An increase in the number of armored personnel carriers, tanks, and artillery at Ukraine’s disposal
- New communication equipment, logistics tools, medical equipment, and spare parts for repairing existing systems
Ukraine will also gain the power to dictate contract terms as the buyer of the equipment.
We’ve witnessed the consequences when Ukraine goes, cap in hand, and asks the West for ammunition to defend their country. Europe promises to send them 1 million artillery shells a year, but fails to prioritise their commitment. This results in Ukraine receiving only half a million shells, with Europe citing difficulties in scaling up production as the reason for the shortfall.
We must realize that the West has failed to utilize one of the best tools we have available to help Ukraine — our capitalist system.
Let us change the scenario to one where Ukraine is not asking for weapons, but telling all European arms manufacturers that they will buy 3 million artillery shells a year — and that they are willing to pay in advance. When told this is not possible, Ukraine answers: “how many billions to make it possible?”
In this scenario, would Europe would still only be able to deliver half a million shells a year?
There is an additional benefit to giving Ukraine control over the funds. When Ukraine is free to select the producer, it incentivises nations to remove restrictions on the weapons they sell — giving their military industries a better chance to secure contracts with Ukraine.
There is also a strong signal effect to all the mercenaries in Putin’s army. If they know that Ukrainians will be fully equipped with the best weapons the West can produce, new mercenaries will think twice, and demand higher pay, before signing contracts with Russia.
While money will change Ukraine’s situation, it will not solve their immediate problems when it comes to the shortage of equipment and ammunition. New equipment takes time to produce. We must cooperate with our allies, so that Ukraine can purchase what they require as quickly as possible.
Let’s put some power back into Ukrainian hands.
Let’s give 5% to Ukraine.
All parts of the opinion piece
